TMI Blog2004 (5) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... istration purposes, the Sub-Registrar, Bhilwara, determined the market value of this plot as on 11th July, 1994, at Rs. 3,10,000 for the purpose of stamp duty and collected the same from the appellant. That the appellant, Smt. Premlata Surya, divided her plot into two equal parts. The assessee sold these plots on 31st Aug., 1994 and 1st Sept., 1994, to M/s Jai Ambey Corporation, Surat, vide two separate sale deeds for a total consideration of Rs. 2,40,000. Again, for registration purposes, on the dates, namely, 31st Aug., 1994 and 1st Sept., 1994, the same Sub-Registrar fixed the value for the purpose of stamp duty at Rs. 6,85,000 as against determined by him at Rs. 3,10,000 on 11th July, 1994. Thus, within a period of less than two months, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presentative further submitted that the ratio of decisions relied by him are contained in pp. 41 to 43 of paper book. The Hon ble Supreme Court in the case of UP Jal Nigam vs. Kalra Properties, Lucknow AIR 1996 SC 1170, has held that the basic valuation is only for purposes of collecting stamp duty and cannot be a foundation to determine the market value. The Hon ble Rajasthan High Court in the case of CIT vs. Raja Narendra (1994) 123 Taxation 636 (Raj), has held that the ITO observing the value shown in the sale deeds is not correct to hold it to be market value of the property so sold. The burden to prove that there was to be consideration received by the assessee over and above the declared and disclosed value of the property is on the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty to the assessee. The agreement to resell was renewed from time to time, lastly, on 9th Nov., 1970, with the stipulated consideration amount enhanced to Rs. 45,000. During the asst. yr. 1973-74, different portions of the property were sold to some relatives of the assessee and two educational institutions for Rs. 81,000. The ITO noticed that the assessee had paid stamp duty payable at Rs. 1,40,000 for this sale. Accordingly, he initiated proceedings for the levy of capital gains tax and gift-tax in respect of this sale. Initially, he brought to tax a sum of Rs. 64,406 as deemed gift by the assessee on the assumption that the market value of the property was Rs. 1,40,000. Subsequently, on being alerted by the Revenue audit that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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